Minimum credit score 700 with full income documentation no alternative or stated income and a 45% debt to income ratio
• 15% Down if it's a non owner occupied rental property, if it's a primary residence you will be owner occupying then it's no money down
•Primary 1-4 Units / Second Home 1 Unit / Investment 1-4 Units
• No Mortgage Insurance
• No Maximum Renovation Amount (Under Conventional Loan Limits) minimum loan amount of $100,000
• No Title Update / Draw / Inspection Fees During Renovation
• Must open a depository account with a minimum deposit of $50 with Lake Area Bank www.lakeareabank.com
• Approval is subject to "After Completed Value" Appraised value no exceptions. Full payment of appraisal required upfront, appraisal cost increases with multi unit properties.
•Please note no funds will be disbursed prior to 100% of all work submitted in the initial bids and estimates are complete. After successful final inspection all funds will be disbursed to the contractor under contract.
• Must use licensed and insured contractors from our pre-approved list of contractors or a contractor of your choice after committee review (must have strong resume & references) NO PAYMENT MADE FOR SELF WORK
• May need to use the MN Fair Plan for homeowner's insurance or alternative insurance that may be slightly more expensive if you are doing significant construction.
• Cannot start any work on property until priority pictures are taken by the title company and mortgage has been recorded with the county (24-48 hours after closing)
• Cannot lock into your end loan interest rate until all work is completed, final inspection has occured, and all required personal documents have been received for final loan approval.
• At lock in your rate could be .25% - .375% higher than current market rates
• Borrower is 100% responsible for any overages due to the contractor
• We request all construction work is completed and end loan closes within 90 days
• There are 2 full sets of non negotiable closing costs and points will be necessary if purchasing rental investment property. Full disclosure of all required costs at time of pre-approval will be given.
Reserve Requirements
• Primary residence minimum 3 months
• Vacation home minimum 3-6 months
• Rental Investment property minimum 6 months on the property being purchased and 2 months on each other mortgaged property
Please note lending criterias are a minimum. All loans must recieve an approve/elligible decision within Fannie Mae's desktop underwriting system and may require additional requirements than listed here.
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